Bank of America Assistance Programs–Home Loan Debt Relief And Foreclosure Prevention Plans

Homeowners with a Bank of America home loan are in a position to take advantage of various debt relief assistance and foreclosure prevention plans for those who may be in a situation where their home loan payment has become problematic. Throughout 2010, homeowners were able to take advantage of home loan modifications from the Making Home Affordable Program, but servicers like Bank of America have also implemented alternative modification plans made directly from in-house assistance programs and have also been able to offer homeowners extension programs which are also from the federal mortgage assistance plan.

Also, there are homeowners who may be able to take advantage of refinancing opportunities which are still available for some as interest rates on home loans remain low. However, homeowners who are in need of either a foreclosure prevention plan or are looking for some form of home loan debt relief assistance will typically have to either consult their servicer or an approved housing counselor in order to take advantage of one of these programs or, for some, to even see whether they qualify.

Bank of America is still offering assistance through home loan modifications from the Making Home Affordable Program in 2011 and throughout 2010 did see an increase in the number of permanent modifications which were made. While there are reports that many servicers are seeing more success through in-house, alternative modifications, there are also extension programs which may be helpful to Bank of America homeowners, or any homeowner who may be with a financial institution participating in HAMP.

While traditional and alternative modifications are still one of the main goals of homeowners in need, unemployment forbearance opportunities and modifications on second liens, as well as homeowners seeking assistance from the Home Affordable Refinance Program when an underwater home is present are issues which servicers like Bank of America have been addressing over the past months and must continue to address in the coming months. However, there have been problems between homeowners and servicers which have led many to feel that they lost their home unfairly, but there are also indications that some homeowners may still be suffering from economic difficulties or are simply filing for a modification assistance plan improperly, which has caused some homeowners to be denied this form of assistance.

Homeowners who work with Bank of America may contact their servicer directly to inquire about assistance regarding underwater mortgages, home loan payment needs, or unemployment, but there are also some indications that homeowners who seek out a reputable housing counselor which is approved by either the Department of Housing and Urban Development or the Making Home Affordable Program may stand a better chance at finding the assistance they need as these certified counselors can more easily guide homeowners through the modification process.

Understandably though, there are homeowners who are able to make their mortgage payment and are not in an underwater situation who has still turned to refinancing options, despite predictions that home refinancing may dwindle in 2011. While there are numerous banks with which a homeowner can refinance, the opportunities to do so in a beneficial way will not be offered to everyone. Homeowners who have benefited from refinancing for a more affordable home loan payment and debt relief options are usually those who have equity in their home and can afford the cost of home refinancing. Yet, options for homeowners to either shorten their mortgage term, allowing them to erase their mortgage debt faster and lower overall costs, and opportunities to refinance for lower rates within a longer mortgage agreement may bring lower monthly payments to homeowners who qualify.

Yet, when it comes to these foreclosure prevention options and mortgage debt relief plans, homeowners have typically been advised to do their research and make sure that they either have begun working with their servicer early in order to avoid any complications which may arise or, in the case of those who are refinancing, they have compared offers, have taken stock of their current financial position, and stand to benefit from refinancing. While there are predictions that more homeowners may lose their home to foreclosure in 2011 than in 2010, advisers still stress to homeowners that these programs from mortgage servicers are still in place and can be beneficial in the new year when it comes to keeping their home from foreclosure.